BUSINESS PLAN

PLANT FOR PRODUCTION OF BIODIESEL

PRODUCTION OF 40 MILLION LITRES (34.65 MILLION KG) OF BIODIESEL ANNUALLY

FEEDSTOCK-ANNUALLY 34.65 MILLION KG OF JATROPHA OIL

INTRODUCTION

The cost of building a Biodiesel plant depends on many factors, including plant capacity,
location, plant design, and equipment cost, which varies by the type of feedstock used.
When assessing the cost of producing Biodiesel, Jatropha oil has a lower cost than some
other feed stocks like Soya, rapeseed etc. but these alternatives cost more to process. The
processing cost per gallon of Biodiesel, including the cost of materials, labour, energy,
plant depreciation, and interest averages about <$0.50 per gallon. The cost of the feedstock
is by far the largest expense for a Biodiesel producer. And Jatropha feedstock reduces it
considerably.

The final stage of bio-diesel production is the transesterification stage in which raw oil is
trans esterified to bio-diesel, which is methyl or ethyl ester based on whether methanol or
ethanol is used in the production process. The capacity of the transesterification plant is
dependent on the amount of raw oil that has to be trans esterified into bio-diesel. The
capital cost of the transesterification plant depends on its capacity. This affects the
economics of the bio-diesel production process differently. Larger the yield of bio-diesel,
better the economic viability of its production.

FEEDSTOCK

Biodiesel plant will use jatropha oil as a feedstock. Methanol is used in the
transesterification process with potassium hydroxide as a catalyst.

FEEDSTOCK PRICES

Jatropha crude oil price is $340 per metric tons.

Cost of methanol is $20 per tons of biodiesel.

Cost of potassium hydroxide is $60 per tons of biodiesel

GENERAL PROCESS DESCRIPTION

1. Treatment of Raw Materials

The content of free fatty acids, water and non-saponifiable substances are key parameters
to achieve high conversion efficiency in the transesterification reaction. The use of basic
catalysts in triglycerides with high content of free fatty acids is not advisable [18], since part
of the latter reacts with the catalyst to form soaps. In consequence, part of the catalyst is
spent, and it is no longer available for transesterification. In summary the efficiency of the
reaction diminishes with the increase of the acidity of the oil; basic transesterification is
viable if the content of free fatty acids (FFAs) is less than 2%.

Alcohol-Catalyst Mixing the alcohol used for biodiesel production must be mixed with the
catalyst before adding the oil. The mixture is stirred until the catalyst is completely dissolved
in the alcohol. It must be noted that the alcohol must be water-free (anhydrous) for the
reasons explained in the previous paragraph
 2. Transesterification
The transesterification reaction was carried out with 0.20 v/v methanol-to-oil ratio (i.e., 5:1
molar ratio) using 0.55% w/v KOH as an alkaline catalyst. The amount of KOH (5.5 g l−1 of
pre-treated jatropha oil) was reached based on the amount needed to neutralize the
unreacted acids (i.e., 2 mg KOH g−1) in the second stage product plus 0.35% for virgin oil.

3. Separation of the Reaction Products

The separation of reaction products takes place by decantation: the mixture of fatty acids
methyl esters (FAME) separates from glycerine forming two phases, since they have
different densities; the two phases begin to form immediately after the stirring of the
mixture is stopped. Due to their different chemical affinities, most of the catalyst and excess
alcohol will concentrate in the lower phase (glycerine), while most of the mono-, di-, and
triglycerides will concentrate in the upper phase (FAME). Once the interphase is clearly and
completely defined, the two phases may be physically separated. It must be noted that if
decantation takes place due to the action of gravity alone, it will take several hours to
complete. This constitutes a ‘‘bottleneck’’ in the production process, and in consequence the
exit stream from the transesterification reactor is split into several containers.
Centrifugation is a faster, albeit more expensive alternative.

4. Purification of the Reaction Products

The mixture of fatty acids methyl esters (FAME) obtained from the transesterification
reaction must be purified in order to comply with established quality standards for biodiesel.
Therefore, FAME must be washed, neutralized and dried. Successive washing steps with
water remove the remains of methanol, catalyst and glycerine, since these contaminants are
water-soluble. Care must be taken to avoid the formation of emulsions during the washing
steps, since they would reduce the efficiency of the process. The first washing step is
carried out with acidified water, to neutralize the mixture of esters. Then, two additional
washing steps are made with water only. Finally, the traces of water must be eliminated by a
drying step. After drying, the purified product is ready for characterization as biodiesel
according to international standards.

QUALITY

The quality of the produced biodiesel will meet Indian standards. Small differences in
standards may exist.
GLYCERINE (BY-PRODUCT)

1. INTRODUCTION
Glycerine is the usual name of 1,2,3-propanetriol; it is also referred to as glycerol,
glycerine or glycyl alcohol. Chemically an alcohol, it is a liquid of high viscosity at
room temperature, odourless, transparent, colourless, of low toxicity and sweet
taste. The boiling point of glycerine is high, 290C (563 K), and its viscosity increases
noticeably at low temperature, down to its freezing point, 18C (291 K). It is a polar
substance that can be mixed with water and alcohols, and is also a good solvent.
Glycerine is hygroscopic and has humectant properties.

Until the last years of the nineteenth century, glycerine was a product of candle
manufacturing (from animal fat) and it was used mainly in the production of nitro-
glycerine for explosives. Later, separation processes from soap were developed
and most glycerine was obtained as a sub-product of the soap industry. Since mid-
century, synthetic glycerine can also be obtained using raw materials from the
petrochemical industry.

At present, glycerine is obtained as a sub-product of soap or biodiesel production,

and it is purified to eliminate the contaminants, mainly partially dissolved soap or
salt (for the sub-product of soap production), or catalyst and methanol (from
biodiesel production).

2. USES
• As an additive in the manufacture of soaps, to improve their properties.
• In the manufacture of nitro-glycerine for the production of explosives.
• In the food industry, for the manufacture of sweets, soft drinks, and pet foods and in the
conservation of canned fruit.
• Due to its moisturizing and emollient properties, in the cosmetics industry for the
manufacture of creams and lotions.
• In the chemical industry, for the fabrication of urethane foams, alkydic resins and
cellophane, among other uses.
• In the pharmaceutical industry, for the manufacture of ointments, creams and lotions • In
the manufacture of certain inks.
• For the lubrication of molds.
MARKET IN INDIA
INVESTMENT AND PRODUCTION COST

INVESTMENT

The total investment needed for biodiesel plant is estimated to be $5.05 million($ 5,050,000
million).This include $4.7 million for plant and machinery and $350,000 for land and
building.

PRODUCTION COST

The table below gives an overview of the production costs for the production of 40 million
litres of biodiesel annually.